Carbon credit markets for AFOLU in LAC: Status, challenges, and actions needed

Countries in Latin America and the Caribbean (LAC) region are at the forefront of implementing carbon pricing instruments. The region has also historically been a major supplier of carbon credits. The growing market poses an opportunity for LAC countries to once again benefit, with a special focus on the land sector. For this project, adelphi produced a paper identifying and analyzing the implications, opportunities, and risks for LAC in engaging in these expanded markets. The paper assessed the status of preparations in LAC, identified bottlenecks and proposed priority actions that need to take place for countries in the region to be able to leverage the opportunities that carbon markets present. The analysis and recommendations covered both the voluntary carbon market and Article 6 participation, and were structured into five categories: strategy; legal frameworks; governance and administrative arrangements; infrastructure; and local capabilities. The recommendations were informed by international good/best practice in each of the areas.